TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 05/15/2000, Docket: GT00- 25-000, Status: Effective

Third Revised Sheet No. 225 Third Revised Sheet No. 225 : Superseded

Superseding: Second Revised Sheet No. 225

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

6.10 Bid Evaluation Procedure.

(a) Unless specifically requested otherwise by a Releasing

Shipper in its Capacity Release Request, Qualified Bids for released

capacity shall be evaluated pursuant to Sections 6.10(b) through 6.10(g)

below. Any Qualified Bid which does not meet a minimum price condition

stated in the Capacity Release Request shall be rejected outright. Any

Qualified Bid with a contingency must have such contingency eliminated

before 3:00 p.m. CCT following the close of the open season, unless the

Releasing Shipper's offer has specified a later time; otherwise, such

Qualified Bid will be rejected.

(b) TransColorado shall calculate a Bid Value and Unit Bid

Value for each Qualified Bid and Prearranged Release (if any), and shall

calculate the Winning Bid Value, as follows:

(i) For each month, the volume and reservation charge

per Dth stated in the Qualified Bid shall be multiplied together to derive

a gross monthly revenue figure. If the Qualified Bids contain volumetric-

based charges permitted by the Capacity Release Request, then the gross

monthly revenue figure shall be equal to any minimum amount designated by

the bidder to be billed as a reservation charge even if there is no (or

insufficient) flow.

(ii) Each gross monthly revenue figure shall be

discounted to a net present value figure as of the first day of the

capacity release as sought in the Capacity Release Request, using the

current Federal Energy Regulatory Commission interest rate as defined in

18 C.F.R. Section 154.501(d).

(iii) The net present value figures for the proposed

release shall be summed, and such sum shall be the Bid Value.

(iv) The Unit Bid Value is defined to equal the Bid

Value divided by the product of: (1) the highest volume of capacity (in

Dth) sought in the Qualified Bid for any day; multiplied by (2) the

release term (in months) in the Capacity Release Request; and multiplied

further by (3) thirty and four-tenths (30.4).